The hotel industry loses approximately $446 billion every year in abandoned bookings. When guests book on OTAs instead, hotels lose an average of $90 per transaction. So, why are guests abandoning bookings, and what can you do to alleviate the problem?
Reason 1: Just Browsing
Around half of customers who begin a booking are actually just curious about the hotel, and what the costs would be. They may not even actually intend to travel. As a result, the bookings are not completed.
Reason 2: Want To Do More Research
Many guests who abandon their hotel bookings decide that they want to do more research before they finalize. This can include searching for things to do in the area, or looking at other hotels.
Reason 3: High Price
Many guests feel as if the price is just too high, and that they are not getting a good deal. Without discounts or rewards, they cannot justify the large price tag.
Reason 4: Forms
Who likes to fill out forms and registration? Guests don’t. Many abandon when they see these steps as too tedious.
Reason 5: Safety
26% of travelers abandon when they do not feel their personal information is secure, and 21% abandon out of fear of compromising their credit card information.
Reason 6: Too Time Consuming
If guests feel as if the checkout process is too time consuming, they will often abandon bookings to complete on a site, like an OTA, that they deem more straightforward.
The Solution: SwayPay
SwayPay fights all potential reasons booking abandonment with ease. Guests are immediately incentivized with discounts and rewards, so they know they are getting the best deal available. They can complete checkout in only 12 seconds by skipping the forms and registration. Plus, they know that their information is always secure due to biometric verification and tokenization technology.